City Council takes initial steps toward taxing telecom companies

On Tuesday, the Memphis City Council took steps toward taxing telecommunications companies.

Under a proposed ordinance, the city would tax phone companies and other businesses that place wires, optic fibers and other infrastructure on streets, alleys and the strips of land along roads that are known as rights of way.

The council voted 11-1 in favor of a resolution that would allow the city to subpoena companies and force them to disclose the locations of the infrastructure that they’ve installed in city rights of way. Council member Lee Harris cast the “no” vote. The council also voted in favor of the taxation plan — it was the first reading on the ordinance, and the measure would have to pass two more readings to pass.

A court ruling several years ago ended a tax on the companies and for the past several months, city officials have been talking about taxing these businesses to raise revenue.